I got a new car on finance but the dealer mistakenly ordered a £3k more expensive spec - now it wants £250 extra at the end

I ordered a new car on a Personal Contract Purchase finance deal three months ago. When it arrived at the showroom, it turned out the salesman had mistakenly ordered a higher-spec version. The dealership said I could take the car, which should have cost me an extra £3,000, at no extra cost. I agreed to take it.

But when I went to collect the car several days later and was filling out the paperwork, while the monthly payments scheduled over a three-year period were unchanged, I spotted that the balloon payment had increased by £250.

Under the terms of the PCP, I have to pay 6.7 per cent interest on the balloon payment annually.

Paying for their mistake? 'Why should I have to pay any extra for the mistake of a salesman?'

When I queried the amount with the dealership's 'business manager', who had failed to point out the increased cost, he said the manufacturer had reduced the deposit contribution it had previously agreed to make as we were getting a higher spec model.

He was adamant he couldn't reduce the balloon payment to what I originally agreed to as the dealership was £3,000 out of pocket for ordering the wrong car – which would benefit me in the long run as the higher spec model should retain its value better than the car I had ordered.

But I don't see why the customer should have to pay any extra for the mistake of a salesman?

My only alternative was to wait another three months for them to re-order the car and I simply couldn't wait that long.

I have 14 days to reconsider the finance deal. What should I do?LW, via email

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HOW THIS IS MONEY CAN HELP

Rob Hull of This is Money replies: As you've said, you have a 14-day cooling off period under the Consumer Rights Act to reject the vehicle.

But don't worry if that period has passed - there's another option available to you.

Because the car is deemed an asset, you can exercise your short-term right to reject under section 22 of the same act.

As long as you can prove that this isn't the vehicle you originally ordered - which should be confirmed in the paperwork you received three months ago - then you have a 30-day period from receiving the car to return it for a full refund on the amount paid.

But don't rush into making any snap decisions just yet - as the business manager said, the dealer's mistake is likely to pocket you some extra wedge at the end of the day.

We asked the Finance and Leasing Association to explain why this is one cock-up that is could very likely become prosperous for you.

Adrian Dally, head of motor finance at the FLA, said: The bottom line is that this person has actually got a very good deal here.

While they may be paying extra interest on the £250-higher balloon payment (the lump sum owed to the financier at the end of a loan term after all regular monthly repayments have been made), they're still paying the same amount per month. This means they must be paying correspondingly less on the depreciation element of the loan, which essentially makes it cost neutral.

A car that's worth £3,000 more than what was originally ordered should have a higher value at the end of the agreement. The only way the customer could lose out is if the car is worth less than £250 more than the specification model ordered in the first place.

This is highly unlikely, especially because the vehicle in question should hold its value well.

What we've seen over the years is these cars are worth around half their value after a three year period, which means the £3,000 increase becomes a £1,500 differential by the end of the agreement.

When you knock off the extra £250 being paid on the balloon payment, this person could be up to £1,250 better off than they would have been in the first instance - that's extra cash in the bank or extra funds towards taking out a new agreement on another car.